New 1000 note is mere speculation, says Economic Affairs Secretary

After media reports indicated that the government was planning to introduce new Rs 1000 notes, Economic Affairs Secretary Shaktikanta Das said today that there was no such plan. His statement puts to rest the speculation regarding the printing and introduction of new Rs 1000 notes in the market. Das posted a Tweet that read, “No plans to introduce Rs 1000 notes. Focus is on production and supply of Rs 500 and lower denomination notes.”

Das also talked about the shortage of cash at ATMs, which is still continuing even after two months of the introduction of new Rs 500 and Rs 2,000 notes. His tweet read, “Complaints of cash out in ATMs being addressed. Request everyone to draw the cash they actually require. Overdrawal by some deprives others.”

Experts said that cash supply to ATMs has reached 80-85%, but due to fear of cash shortage, people are hoarding cash. The moment people find cash in an ATM, especially the Rs 500 notes, they grab the opportunity to withdraw as much as they can, with the aim to keep it with them. People are withdrawing cash even when they may not actually need it. It may take some more weeks for people to let go of their fears of cash shortage, post which, things will start to normalize.